BUILDING GOLD MINES

NEW home prices in Spain rocketed by 7.1% last year - the biggest increase since 2007. Price rises are predicted to continue to rise during 2023 but expect the rate to slow down due to the economic situation.

According to the official appraisal company the Sociedad de Tasacion

By Alex Trelinski

new builds were fetching an average of €2,732 per m2 at the end of December but still below the historical high of €2,905 in June 2007.

The region showing the biggest new property price hike is the Balearic Is- lands (up 9.1%) followed by Madrid (8.5%), Navarra (7.2%), Andalucia (7.1%) and Valencia (7%).

By capitals, Barcelona (€4,917 per m2) remained the most expensive place to buy, followed by Madrid (€4,125) and then San Sebastian (€4,048).

Malaga took the honours as the provincial capital where new housing

New builds soar inpricewiththe biggestincrease since 2007

prices had the highest percentage rise last year (up 9.3%).

Sociedad de Tasacion CEO, Juan Fernandez-Aceytuno, explained: “The market behaviour towards the end of 2022 shows the impact of interest rate rises on real estate activity, but with new housing, even at the end of the year, there’s growth that is higher than or equal to that registered in 2019.”

He believes that prices of second-hand homes may fall due to inflation, but sustained price growth will continue for new housing.

Meanwhile, real estate portal Fotocasa is estimating overall sales will fall by up to 12% this year after surpassing 600,000 transactions in 2022.